Porsche Made a Staggering $4.82 Billion in Profit Last Year
Porsche’s annual report reveals the company was making $550,595 per hour last year and is in remarkably good health.
The financial crisis Porsche found itself in at the start of the 1990s seems distant in the rearview mirror now. In 1992, the company was dangling on the brink of bankruptcy. Between the recession wreaking havoc on sales, costs spiraling out of control and a less than ideal manufacturing system, things looked bleak at the end of the last century. However, according to CNBC and Porsche’s latest annual report, the company is now in the rudest of health with a 2017 profit of $4.82 billion.
To break that number down and gain some perspective, CNBC has done the math to work out Porsche is averaging, and you might want to strap in for this, $13.2 million each day and $92.8 million in profit per week. To break that down even further, that’s $9,176 per minute and $153 per second through 2017.
Earlier in the year, we got a snapshot of how Porsche is doing in terms of profit with Bloomberg estimating around $17,250 in profit per-car. For perspective there, that kind of money would buy you a whole new Kia Soul and leave you with enough cash in your pocket for a decent meal with some friends. Compared with Porsche’s German rivals, BMW and Mercedes are making around $5,000 per car. For perspective there, you could pick up a used 2005 Mazda 3 in decent condition and maybe fill it up with fuel for the journey home for that money.
Porsche’s financial success and profit growth are down to a solid strategy. With an average vehicle sale of $99,000, Porsche is using neither BMW and Mercedes volume approach or Ferrari’s business model that inflates prices through scarcity. Porsche is concentrating on building the cars that make their customers happy. It sounds simplistic, but Porsche is showing the world that if you build something people love, then they will part with good money for it.
